What happens when the owner does not pay? It is normal that when you make the first non-payment of mortgage payments, the bank will contact the borrower because it can be a mistake or an oversight. If not, and the client continues to owe time you charge interest for late payment can also be borne by the guarantor. Where there is a real economic problem which hinders the payment of money by the owner, it is possible to extend the period for repayment of credit provided the bank and the holder agree. This would reduce the money to pay for each share but would increase the total because the longer it takes to repay the loan plus interest must be paid.
In the event that this is not possible, the bank initiated a lawsuit against the borrower and guarantors that, if accepted, could lead to the seizure of the mortgaged property or money, payroll, or both goods and property holder and the guarantor. Ultimately, these properties can be auctioned to cover the debt.
When the person who has endorsed the claim had been forced to deal with the payment of money due, is entitled to require the borrower the amount becoming a creditor of the holder of the loan. If for any reason, the debtor could not pay the amount asked the guarantor, it may require the sale of the mortgaged floor to collect the endorsement.
The guarantor also will be for the duration of the mortgage, unless agreed upon a given period or that the loan is amortized amounts, and meets all present and future heritage. For this reason, you should be cautious and take into account that conditions today are not the same as they will in a few years. A guarantor for several decades is a decision that deserves to be pondered, weighed and measured in all its aspects and consequences.
